FORT SASKATCHEWAN, ALBERTA, CANADA - The Westaim Corporation today announced that its Board of Directors has declared a dividend-in-kind to Westaim shareholders consisting of one common share of ThermicEdge Corporation for each 100 Westaim shares held. Westaim shareholders who hold less than 100 shares will receive cash instead of fractions of ThermicEdge stock.

Immediately following the declaration of the dividend-in-kind, the Board of Directors of ThermicEdge declared a stock dividend of nine ThermicEdge common shares for each ThermicEdge share held. The net result is that Westaim shareholders who hold at least 100 Westaim shares will receive 10 ThermicEdge shares for every 100 Westaim shares held.

The record and payment dates for both the dividend-in-kind and the stock dividend are March 3 and March 12, 1998, respectively. Shareholders holding Westaim common shares on the record date will be mailed on or after the payment date the share certificates of ThermicEdge to which they are entitled and/or a cheque in lieu of any fractional ThermicEdge common shares. ThermicEdge shares have been conditionally approved for listing on The Alberta Stock Exchange.

The Board of Directors of Westaim has set the value of the dividend-in-kind at $0.20 per Westaim share, which equates to a value of $2 per ThermicEdge share following the nine-for-one stock dividend.

ThermicEdge was formed as a result of Westaim's spin off of its Electronic Materials and MicroWear technologies to the company effective July 1997.

ThermicEdge develops and sells specialized electronic materials used to package high-performance electronic devices, including semiconductors. ThermicEdge's electronic materials product line is primarily based on the manufacture of metallized aluminum nitride components that help remove heat from electronic devices.

ThermicEdge, through its MicroWear subsidiary, has also developed microwave sintering technology which has been substituted for conventional thermal processing in the manufacture of cutting tool and wear resistant industrial parts, resulting in superior performance characteristics.

About Westaim

Westaim's new business opportunities consist of biomedical coatings, surface engineered products and electroluminescent flat panel displays. Westaim also manufactures aerospace materials, chemicals and coin blanks. Westaim is a TSE 300 company whose common shares are listed on The Toronto Stock Exchange, The Alberta Stock Exchange and the Montreal Exchange under the trading symbol "WED".

CONTACT:

Tony Johnston, Senior Vice President, Corporate Affairs, Westaim Corporation (403) 234-3103
Michael McKibbin, President, ThermicEdge Corporation (403) 992-5307

Website: www.westaim.com